Exxaro CEO Mxolisi Mgojo
Photo by: Creamer Media's Dylan Slater
JOHANNESBURG (miningweekly.com) – Exxaro Resources CEO Mxolisi Mgojo is not “too worried” about the expected 5% decline in the miner's coal production for the first half of this year, as he expects the company will meet its full year targets.
The company on Wednesday attributed the expected decline in its coal output to reduced demand from State-owned power utility Eskom.
However, Mgojo, speaking on the sidelines of The Digital@Exarro Show & Tell event on Thursday, noted that, “at the same time last year, we were one-million tonnes down on production. By the end of the year, not only had we met our target, we exceeded it by 400 000 t.”
He added that there were no immediate plans to alter Exxaro’s coal production in light of lagging domestic and international demand, adding that the ramp-up at its Mafube mine, as well as the commissioning of its Belfast operation were continuing apace.
The latter is six months ahead of schedule and is already producing run-of-mine ore.
Mgojo noted that, “the only thing that has had a negative impact is the time it has taken to get some of our capital from Eskom”, adding that this, as well as the project delays that resulted from Exxaro terminating Group Five’s contract at the Grootegeluk mine, were challenges beyond Exxaro’s control, but which had been mitigated by the team.